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Metals React To Fed Shockwaves – Ready For Next Move

On July 31, 2019, the US Federal Reserve decreased the Federal Funds Rate (FFR) by 25 basis points.  We believe the US Fed was pushed to take this action for three reasons that are directly related to the fear and greed that is abundant in the global markets.

Reason #1 Fed Had To Cut Rates

First, the US Fed is very concerned that the US housing market has stagnated and weakened over the past 16+ months.  The Fed has pushed the FFR towards our modeling system’s upper boundary (2.0 to 2.25) many months ago and this has pushed the housing market over a supply/demand precipice that may already be too far gone for a substantial recovery.  The US Fed, attempting to prevent another housing market collapse, must attempt to ease lending in an attempt to spark new real estate activity.

Reason #2 Fed Had To Cut Rates

Second, the US Fed must attempt to ease the foreign market US Dollar carry trade liabilities and attempt to allow more US Dollar opportunity in the foreign economy.  Over the past 2 to 3+ years, the supply of US Dollars within the foreign markets has diminished considerably while demand has increased.  Because of this, a US Dollar shortage currently exists in much of the global economy.  The US Fed is attempting to allow more US Dollar supply by lowering the FFR.

Reason #3 Fed Had To Cut Rates

Lastly, the US Fed, attempting to accommodate a more adaptable rates policy in order to more adequately facilitate the global economic turmoil that is persistent throughout the world.  Even though the US economy is still very strong and showing only mild signs of weakness currently, the US Fed felt the need to become more accommodating to allow more flexibility for global central banks to navigate through the current trade and geopolitical issues.

Dollar Hits Resistance And Should Reverse Down

Metals reacted by moving lower as the US Dollar rallied after the Fed announcement.  The US Dollar is currently near the upper price channel that we believe will prompt a weaker US Dollar over the next few weeks and will likely prompt a move lower over the next few weeks – allowing metals the ability to skyrocket higher over this same span of time.

Gold Set To Rock Higher

Gold is reacting to the US Dollar/Fed news by rotating within the black line and magenta arc levels that we highlighted weeks ago.  These Fibonacci Price Amplitude Arcs highlight key price levels that are acting as resistance for Gold right now.  Once price breaks these levels, Gold will skyrocket above $1550 and likely target $1650 or higher.

Silver Ready To Rally

As we’ve highlighted several times, Silver is likely the best trading opportunity set up on the planet right now.  We’ve highlighted where we are currently (“We Are Here”) and where we believe the price will move to in the future on this chart.  Using our Fibonacci Price Amplitude Arc levels and Fibonacci price ranges, we can “guess” where price may target in the future and where peaks and valleys may form.  We believe silver is setting up for a move to levels above $21~$22 right now and will begin this move higher within the next 2 to 5 weeks.

Even though the US Fed is attempt to act as a savior for the global central banks and attempting to easy US monetary policy while the global markets attempt to address their political and economic issues, we believe the US economy is uniquely strong in relation to other global economies and we believe the fear/greed factors will continue to increase over the next 15+ months or longer.

Gold and Silver are setting up to become some of the best trades we’ve seen in a very long time for us, technical traders.  We believe Silver could rally well above $30 over a very short period of time.  Don’t worry about the rotation in the metals markets as a reaction to the US Fed.  The real news is that the US Dollar has reached the upper price channel limit which should prompt a bigger upside move in the US metals.

CRUCIAL WARNING SIGNS ABOUT GOLD, SILVER, MINERS, AND S&P 500

In early June I posted a detailed video explaining in showing the bottoming formation and gold and where to spot the breakout level, I also talked about crude oil reaching it upside target after a double bottom, and I called short term top in the SP 500 index. This was one of my premarket videos for members it gives you a good taste of what you can expect each and every morning before the Opening Bell. Watch Video Here.

I then posted a detailed report talking about where the next bull and bear markets are and how to identify them. This report focused mainly on the SP 500 index and the gold miners index. My charts compared the 2008 market top and bear market along with the 2019 market prices today. See Comparison Charts Here.

On June 26th I posted that silver was likely to pause for a week or two before it took another run up on June 26. This played out perfectly as well and silver is now head up to our first key price target of $17. See Silver Price Cycle and Analysis.

More recently on July 16th, I warned that the next financial crisis (bear market) was scary close, possibly just a couple weeks away. The charts I posted will make you really start to worry. See Scary Bear Market Setup Charts.

CONCLUDING THOUGHTS:

In short, you should be starting to get a feel of where each commodity and asset class is headed for the next 8+ months. The next step is knowing when and what to buy and sell as these turning points take place, and this is the hard part. If you want someone to guide you through the next 12-24 months complete with detailed market analysis and trade alerts (entry, targets and exit price levels) join my ETF Trading Newsletter.

Be prepared for these incredible price swings before they happen and learn how you can identify and trade these fantastic trading opportunities in 2019, 2020, and beyond with our  Wealth Building & Global Financial Reset Newsletter.  You won’t want to miss this big move, folks.  As you can see from our research, everything has been setting up for this move for many months.

Join me with a 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis.

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities starting to present themselves will be life-changing if handled properly.

FREE GOLD OR SILVER WITH MEMBERSHIP!

Kill two birds with one stone and subscribe for two years to get your FREE PRECIOUS METAL and get enough trades to profit through the next metals bull market and financial crisis!

Chris Vermeulen – www.TheTechnicalTraders.com

ADL Predictive Modeling Suggests A Big Move In Silver

Our Adaptive Dynamic Learning (ADL) predictive modeling system is suggesting that Silver is currently well below the projected ADL price level.  We believe the current pricing pressure in Silver is related to global central banks attempt to regulate precious metals prices over the past 24+ months.  We believe the upside move in Gold will eventually roll into Silver and the ADL predictive modeling system is suggesting Silver is currently 34% undervalued.

Our ADL predictive modeling system is capable of identifying highly probable price outcomes in the future by tracking and mapping historically accurate similar price DNA patterns.  The chart below shows exactly why we believe Silver is setting up an ADL price anomaly where a big upside price reversion should take place over the next 30 to 90 days.

It is difficult to attain an exact date for the reversion move, yet we know that the ADL predictive modeling system is suggesting Silver should be trading above $17 right now.  Over the next 4+ weeks, the ADL suggests price should be above $18.  The current price, near $13.95, is well below these ADL predicted levels.  Thus, we believe a price reversion process will take place to drive the price of Silver upward toward the ADL predicted levels.

Now, if you take a look at our Silver Cycle Momentum chart below you can see that the current price of silver is just starting what looks like a new uptrend.

We believe the current upside price move in Silver is just the beginning.  This may, very well, be the last time we’ll see sub $14 levels for quite a while in Silver.  We believe skilled traders should be taking advantage of these historically low levels right away to prepare for the upside price move. Keep in mind the market does not move straight up and while I am bullish this me not be the exact time to by silver.

Become a technical trader by watching my daily analysis video each and every morning before the opening bell, and take the same trades I do with my trade alerts at the Wealth Building Newsletter.

Chris Vermeulen
www.TheTechnicalTraders.com

Fibonacci Support May Signal Bounce in Oil & Equities

We want to take a moment to point out that a Fibonacci 100% price move setup may prompt an upside price swing over the next few days and weeks.  Many traders fail to identify this setup and get caught up in the current price trend.  This happens because we lose focus on the fact that price always moves in segments or legs – from one peak or trough to another peak or trough.  The process of creating these segments or legs is usually structured in these types of Fibonacci price increment, and Fib targets I have personally found to be the most accurate for spotting profit taking and turning points.

We provide two very clear examples of this type of setup and how it has worked in the past.  We urge all traders to understand there are many examples of larger Fibonacci price expansion legs throughout history.  These examples of the 100% Fibonacci price leg are unique instances of price movement and, after confirmation of a base/reversal, can become very valid trading signals.

This first example is the ES (E-Mini S&P Futures).  You can see from this chart the earlier examples of the 100% Fibonacci price legs working in the October 2018 downward price move. The current downward price legs have set up a perfect 100% Fibonacci price expansion leg and we believe support may form near $2732.

We would normally wait for some type of price confirmation that this level is going to act as support – for example, a solid reversal bar or Japanese Candlestick price pattern.  After confirmation is achieved, a price rotation equal to 60% to 95% of the last downward price leg can be expected.

This next example shows Crude Oil and the most recent downward two Fibonacci Price Legs.  The first resulted in a very quick upside price rotation (highlighted by the green arrow near May 20).  The second downside Fibonacci Price Leg just ended near $53.30.

It is our belief that Oil will find support near this $53.30 level and rally back above $56 from these lows.  The only thing we are waiting for is some type of technical price confirmation of this bottom setup and we can expect a 4% to 8% upside price swing in Crude Oil.

Over the past 21+ months, we’ve highlighted some of the best tools and techniques we use to find great trading signals.  This one technique, the Fibonacci 100% Price Expansion Leg, is just one of the tools we use to find trades and targets for our trade alerts for members.

The more one understands how price works and how the markets operate as a Symphony of price actions, one can find opportunities for great trades almost all the time.  Skill and experience make the difference when deciding when to trade and what to trade and that’s what we provide.

More eye opening charts on currencies and gold here

We’ve now shown you two different price setups using Fibonacci price theory and the only thing we have to do is wait for a technical price confirmation before finding our entry trade.  We’ll see how this plays out over the next few days and weeks.  Remember, we are not proposing these as “major price bottoms”. They are “upside pullback trades” (bounces) at this point.  A bullish price pullback in a downtrend.

BECOME A TECHNICAL TRADER TODAY AND 
TRADE WHAT MATTERS – PRICE ACTION! 
CLICK HERE

Chris Vermeulen

How Sustainable Is The Move Into Safe Havens?

Chris Vermeulen. Founder of The Technical Traders joins me to share his thoughts on the recent flow of money into safe haven assets. During the selloff, yesterday in US markets money moved into bonds, gold, and back into the USD. We discuss just how long this run could last and which sectors Chris is the most bullish on.

This is proving to be an incredible trading year for traders who follow our trade alerts newsletter.

For active swing traders, you are going to love our daily trading analysis. On May 1st we talked about the old saying goes, “Sell in May and Go Away!” and that is exactly what is happening now right on queue. In fact, we closed out our SDS position on Thursday for a quick 3.9% profit and our other new trade started Thursday is up 18% already.

Second, my birthday is only three days away and I think its time I open the doors for a once a year opportunity for everyone to get a gift that could have some considerable value in the future.

Right now I am going to give away and shipping out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter. I only have 3 left as they are going fast so be sure to upgrade your membership to a longer-term subscription or if you are new, join one of these two plans, and you will receive:

1-Year Subscription Gets One 1oz Silver Round FREE
(Could be worth hundreds of dollars)

2-Year Subscription Gets TWO 1oz Silver Rounds FREE
(Could be worth a lot in the future)

I only have 3 more silver rounds I’m giving away
so upgrade or join now before its too late!

SUBSCRIBE TO MY TRADE ALERTS AND GET YOUR FREE SILVER ROUNDS!

Happy May Everyone!

Chris Vermeulen